Decarbonization has become a global imperative and a priority for governments, companies, and society at large. This report from Deloitte and Shell analyzes the challenges the construction sector faces in reducing its emissions, while also proposing a roadmap to accelerate the transition to net-zero emission construction.
The drive to decarbonize
The construction sector is essential for modern society, delivering the buildings we live and work in, the roads and bridges that connect us, and the industrial facilities that produce and distribute our energy and goods. In 2020, construction output accounted for around 13% of the global gross domestic product (GDP). The sector can also be an enabler of decarbonization across other sectors through green buildings, renewable energy projects, and production facilities for greener products, such as electric vehicles.
Despite being a crucial sector for the world economy, construction is a hard-to-abate one. With emissions coming from sourcing and producing materials, logistics, and construction activities – called embodied carbon – accounting for more than 16% of global CO2 emissions, it must decarbonize.
Decarbonization solutions and initiatives are emerging across the construction value chain, but more needs to be done and quicker to achieve net zero.
Decarbonizing Construction: Building a low-carbon future
The “Decarbonizing Construction: Building a low-carbon future” report presents the voice of the industry, reflecting the view of nearly 100 executives from 84 companies across the construction value-chain from Europe, North America and Asia on the challenges and opportunities to decarbonize the construction sector.
The sector is at a point where it needs to make decisions around decarbonization. This report recommends 14 solutions for accelerating the decarbonization of construction and presents a practical way forward. Here are a few key highlights from the report:
Decarbonizing the construction sector can have a profound impact on global emissions and can accelerate action in a number of other sectors across the value chain. Synchronizing regulation, and investment roadmaps between customer demand and material supply is necessary. Engaging with nearly 100 executives and experts, we define 14 solutions for change, and explore best practices from around the world to inspire action
Tarek Helmi, Partner, Deloitte Netherlands
Connected for a new energy future
Energy is the pulse of our day-to-day life and how we create and use it is evolving rapidly. At Deloitte, we understand the opportunities the Future of Energy brings and the importance of connecting ecosystem players, innovators, regulators and thought leaders to create a new energy world that is sustainable and abundant. In collaboration with Shell and working closely with many leaders of the construction industry, Deloitte explores the promise of decarbonizing the industry. We truly believe that as ecosystem players connect and adopt the right mind-set, the positive impact we make can be accelerated.
This report was produced in collaboration with Shell.